The Australian Dollar to US Dollar exchange rate has fallen to a one-month low this morning after lower Chinese PMI data for January provoked a more bearish tone. The growth-linked Australian Dollar relies heavily on positive Chinese growth to maintain its value.

China's official measure of manufacturing surprise fall could also have an impact on other currency pairs if growth continues to flag in the world’s second largest economy.

The Yen has also continued to weaken having already been dragged lower by a broadly stronger Euro and New Zealand Dollar, with mixed data out of China only adding to the Yen’s pain.

The Pound Sterling has continued to fall this morning losing around 20 pips as the London market opened; the pair continues to look vulnerable to further losses ahead of a manufacturing survey due for release later today. This could give Forex traders more clues on the extent of the British economic decline.

The Euro is currently in favour reaching a 2 year high versus the Dollar, the Euro to Dollar exchange rate is now regained above the November 2011 high, further rises are likely.

Focus will now shift to the UK Manufacturing PMI data for January due for release at 0928 GMT. A weak number would suggest the economy started the year badly, raising concerns the UK has slipped back into recession and weighing on sterling.

The Pound continues to feel the pressure since data last week showed the economy shrank in the last three months of 2012. PMI could exacerbate the downward trend against most of the Majors.